Former Chairman of Carolina Investors Released on Parole for Securities Fraud

Jack Sterling Released on Parole After Serving Part of His Securities Fraud Sentence

On Wednesday, March 20th, former chairman of HomeGold Financial Jack Sterling was granted parole.

Sterling is serving a five year sentence for securities fraud, for his role in orchestrating the 2003 collapse of Carolina Investors, which was owned by HomeGold Financial, Inc.

It will take about a week to process Sterling’s parole, according to agency spokesperson Peter O’Boyle. This was Sterling’s first attempt at parole, and the Parole and Pardons Board panel granted his request in a 3-0 vote.

Sterling began serving his sentence for securities fraud last April, after a lengthy appeal of his conviction in 2009. With parole, he will be in home detention for six months.

In the 2003 collapse, about 12,000 people who had invested in Carolina Investors lost nearly $278 million. The collapse was the biggest bankruptcy in South Carolina state history at the time.

After Carolina Investors went under, six executives between Carolina Investors and the parent company HomeGold Financial were convicted for securities fraud.

As part of his parole, Sterling has agreed to have nothing to do with the financial industry, and will serve 200 hours of community service.

The Department of Corrections said that Sterling would likely have been released in September 2014.

The State Attorney General’s office opposed Sterling’s parole, saying that victims in the case “suffered enormously.” Prosecutors said that Sterling was a central figure in orchestrating the financial collapse.

Securities Fraud and Business Litigation Defense in South Carolina

Securities Fraud investigations are complex white collar fraud cases that require strong criminal defense. Securities Fraud investigations and cases often take years to put together, and involve a lengthy grand jury process. If you or your corporation is accused of or charged with Securities Fraud, you need a criminal defense lawyer that can represent your interests with the United States Attorneys’ Office. Below please find a brief description of Securities Fraud.

Whoever knowingly executes, or attempts to execute, a scheme or artifice-

(1) to defraud any person in connection with any security of an issuer with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o (d)); or

(2) to obtain, by means of false or fraudulent pretenses, representations, or promises, any money or property in connection with the purchase or sale of any security of an issuer with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78l) or that is required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78o (d));

shall be fined under this title, or imprisoned not more than 25 years, or both.

The Strom Law Firm Can Help with Business Litigation, Including Securities Fraud Charges

The Strom Law Firm LLC’s business litigation practice is focused on representing individuals, officers, directors, public companies, and private corporations involved in complex civil disputes.

We concentrate our resources and efforts on business and commercial litigation involving:

Attention to detail, complete investigation, thorough preparation, and a willingness to try cases are the cornerstones of our business litigation practice.

If you face serious white collar crime charges, including securities fraud, the attorneys at the Strom Law Firm, LLC can help. We offer free, confidential consultations so you can discuss the facts of your case with impunity. Do not let white collar crime charges ruin your reputation and prospects. Contact us today. 803.252.4800.

Centrally located in Columbia, South Carolina, the attorneys at the Strom Law Firm, L.L.C. represent clients in a variety of civil and criminal matters. We handle cases throughout South Carolina including Columbia, Lexington, Florence, Camden, Aiken, Charleston, Orangeburg, Irmo, Gilbert, Red Bank, Blythewood, Gaston, West Columbia, Chapin, Rock Hill, Saluda, Lancaster, Sumter, Spartanburg, Newberry, North Augusta, Batesburg-Leesville, as well as cases in Richland County, Lexington County, Fairfield County, Kershaw County, York County, Newberry County, Calhoun County, and Sumter County. The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for advice regarding your individual situation. We invite you to contact us and welcome your calls, letters and electronic mail. Contacting us does not create an attorney-client relationship. Please do not send any confidential information to us until such time as an attorney-client relationship has been established.